Strong Q1 nos, firm Asia keep Sensex in bull zone

UMBAI: Sensex rose for the second week in August, as it closed 0.5% higher on Friday, lifted by firm Asian stocks and led by gains in top lender State Bank of India (SBI), which recorded a fresh all-time high. Traders said the outlook for the market was bullish. A drop in European shares capped the gains.

SBI rose as much as 3.4% to Rs 2,879.95, its highest-ever level, as investors gave a thumbs up to its June quarter earnings, which beat market estimates. The 30-share BSE index rose 0.52%, or 93.13 points, to 18167.03 points, taking gains in the week to 0.1%. Two-thirds of its components advanced.

“The market will be range-bound until we have fresh triggers to drive it up, now that earnings season nears close,” said Nitin Rakesh, CEO of Motilal Oswal’s asset management business. “But the sentiment is definitely bullish and capital flows into our country will continue. We had positive surprises in the last leg of the earnings season. Monsoon is no longer a worry either.”

The benchmark index is up 1.7% so far in August, and has risen 4% in 2010, with foreign funds pumping in $11.3 billion in Indian equities. So far in the year, the benchmark index has outperformed broader indexes such as MSCI’s measure of Asian markets other than Japan and emerging markets index which have dropped 3.2% and 1.3%, respectively.



Oil explorer Cairn India rose as much as 5.1% to an all-time high of Rs 358, as a source said that India-focused will take a 51% stake in the Indian firm for $8-8.5 billion in a deal that is likely to be announced by Monday. Sterlite Industries , a unit of Vedanta, dropped 4.3%. “This is a knee-jerk reaction. Sterlite has huge cash balances which the group may use to fund Cairn India stake buy,” said Deven Choksey, managing director and CEO of KR Choksey Shares.